Cape May Brewing Company has announced that it will divest its distribution rights and cease self-distribution of its products through Cape Beverage Distributing. The move may be a rising trend among craft brewers who decide to focus their attention on the brewing side of the business and at the same time extract working capital by selling the distribution rights to beer wholesalers.
The Cape May brands will move to four family-owned MillerCoors distributors: Kramer Beverage Company of Hammonton, N.J., Peerless Beverage Company of Union, N.J., Shore Point Distributing Company of Freehold, N.J. and Kohler Distributing Company of Hawthorne, N.J. With the largest territory coverage in the state of New Jersey, Kramer Beverage Company will distribute a majority of Cape May Brewing inventory.
Financial terms were not disclosed.
“At the heart of this decision is our renewed appreciation for our entrepreneurial roots and what has driven our success from day one,” said Ryan Krill, Founder, Cape May Brewing Company. “We know what we do exceptionally well. We create delicious and innovative craft brews and spirits that have made fans happy for years, leaving them in anticipation of what’s next from us. That’s why we want to funnel all of our time, energy and resources into delighting them with our products.”
Cape May Brewing Company said they will actively support former employees of Cape Beverage Distributing, offering job placement assistance, severance, and continuation of benefits packages to aid in this transition.